If you reside or plan to reside in the city of Columbus, you must consider some tax aspects, such as the application of the city’s income taxes. We will detail the most important facts about these taxes, their application, calculation, and when they can be paid.
Columbus Income Tax
The City of Columbus levies a 2.5% income tax. That is a levy managed by the Columbus Division of Income Tax. This agency governs the city’s collection, audits, and enforcement of taxes.
Along with the income mentioned above, the City of Columbus lodging excise tax and the Franklin County Facilities and Convention Authority is also enforced through this agency.
In addition to making face-to-face contacts and inquiries, it is possible to enter the online payment section from this link, thus facilitating the procedures.
Important facts about taxation in Columbus
Some relevant facts have to do with tax rates in the city.
It is important to keep these facts in mind as they can determine whether your tax obligations belong to Columbus or not. First, these questions assess whether you fall within a particular tax jurisdiction. To find out what your tax jurisdiction is, if you do not know, you can call (614) 645-7370.
Remember that data such as school district and mailing address do not always directly reflect the tax jurisdiction. For this reason, it is convenient to know it and, if not, to consult it.
On the other hand, we must remember that, as a user, we assume responsibility for paying additional taxes when the tax rate of our place of residence exceeds that of our site of work.
Initially, the tax filing deadline is April 18. There are options to file extension requests: however, you must also file extensions before April 18.
Another piece of information: when you do not keep a withholding on your earnings, you must file an estimated tax return and remit quarterly installments equal to the total of the estimate. Must send this amount to the Income Tax Division. On the other hand, it will not be necessary to file a return when, throughout the tax year, you have been under 18 years of age. In addition, when the employer has withheld tax on your wages, you may be eligible for a refund.
What are things exempt from tax?
Some things are exempt when calculating the municipal tax. The most relevant are the following:
- Social security benefits
- Welfare payments
- State unemployment
- Interest and dividends
- Pension income
Another important aspect is to assess whether the withholding was less than 2.5%. In this case, it is usually recommended to check the W-2 form. This verification allows you to check if your employer has made the correct withholding. If you have worked in another city, you can claim credit for any municipal tax withheld and paid.
It is also important to note that net rental income, commissions, tips, and self-employment income are subject to municipal tax: earned income. The declaration is mandatory when you have a rental property or generate other business income, even if you have losses.
Payment plans and assistance if you are unable to pay your taxes
That is an element of assistance offered by the City of Columbus to those who cannot afford to pay the full amount of taxes. In this case, the user may consider being eligible for assistance.
The tax department provides some important facts to keep in mind in this case. When you cannot pay the outstanding balance, you can communicate through the phone number 614-645-8152 and review the possible payment options. That would be the first step. Remember that you will not be charged any amount for joining a payment plan. However, late payments may accrue penalties and interest on the tax debt.
On the other hand, it is also possible to request a reduction or even elimination of the penalties imposed for non-payment of the corresponding taxes. However, to do so must have paid the total amount owed plus interest until the time of payment in full. In this situation, it is possible to request a debt reduction. The institution provides a telephone number for this type of consultation, 614-645-7370.
In any case, it is never possible to eliminate or reduce the interest generated in the tax obligations. Also, a penalty reduction will not be possible if the required tax returns have not been paid and the interest generated will not be assessed.